Shopify Inc. shares fell sharply on Thursday after the e-commerce platform issued weaker-than-expected guidance for the upcoming quarter and flagged ongoing uncertainty around global tariffs as a headwind to growth.
The company reported quarterly earnings that beat analyst expectations, but it was the forward-looking statements that triggered concern on Wall Street. Executives said revenue growth could slow in the next quarter, and that margin pressures may persist amid shifting trade policies.
“The macro environment remains complex,” said Shopify CFO Jeff Hoffmeister on the earnings call. “We’re seeing uncertainty around tariffs and international trade, especially as some regions reconsider existing agreements and impose new duties.”
Investors reacted swiftly. Shopify’s stock dropped more than 8% in morning trading, giving up some of the gains it had made earlier in the year. The company didn’t specify which regions were causing the most tariff-related strain, but analysts believe tensions between the U.S. and China—as well as potential digital service taxes in Europe—may be contributing to the cautious outlook.
Despite the softer guidance, Shopify continues to expand its offerings. The company highlighted investments in AI-driven tools for merchants and new features aimed at boosting conversion rates for online stores. Still, the company emphasized a measured approach to spending, with a focus on maintaining profitability amid economic uncertainty.
Some analysts see the pullback as a buying opportunity. “The fundamentals remain solid, and Shopify is still a leader in the e-commerce infrastructure space,” said Katie Lin, senior tech analyst at Redwood Capital. “But the market is clearly jittery when forward guidance doesn’t match the pace we saw in previous quarters.”
Shopify is the latest in a string of tech companies to issue more conservative forecasts as geopolitical tensions and shifting trade rules cloud visibility for global businesses.
